Federal Tourism Minister
Martin Ferguson
and the board of Tourism Australia maintained support for the organisation’s chairman, former
Qantas
boss
Geoff Dixon
, on Thursday as events champion and former Victorian premier
Jeff Kennett
urged Mr Dixon to “back away" and stop agitating against the airline.

Speaking to The Australian Financial Review outside a tourism conference in Sydney on Thursday, Mr Kennett – recognised as having reinvigorated tourism in Victoria when premier and for being part of the negotiations that helped deliver Emirates to Australia in the 1990s – said: “I know Geoff. He’s a good man; he’s got a creative mind.

“But he’s been head of the airline. He’s had his opportunity to bring off the privatisation, and that didn’t work. Often people who have been in senior positions have to back away a bit once they hand over the reins."

Mr Kennett urged Mr Dixon to “allow those he has nurtured to exist and grow. It’s a competitive world and it’s a bit hard if you’re trying to do a job and someone is, allegedly, trying to pull you apart".

The federal Coalition has called on Mr Ferguson to examine whether TA, the peak tourism body, is managing its commercial relationships in the national interest, while some tourism industry leaders warned the dispute between TA and Qantas might “fracture" the industry and affect Australia’s image overseas.

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“It was the board’s view at the time, and remains the case, that this does not create an unmanageable conflict of interest," a TA statement said.

“As per regular board protocols, having declared the interest, chairman Geoff Dixon will continue to absent himself from all matters relating to the Qantas group," Ms Lamont said.

Mr Ferguson confirmed his support, saying “having referred the issues raised by Qantas with me in a letter [dated] 27 November, I welcome the board’s conclusion that the personal interests of [Mr] Dixon do not create an unmanageable conflict of interest. As Tourism Australia has indicated, we value our relationship with Qantas and hope these differences can be resolved over time."

Tourism operators expressed concern.

“Both Qantas and Tourism Australia are crucial to the success of the Australian tourism industry,’’ Australian Tourism Export Council managing director
Felicia Mariani
said.

TA extends olive branch

“We hope the issue is resolved quickly and we can move forward in a positive way to achieve the best outcomes for the industry."

TA managing director
Andrew McEvoy
extended an olive branch, saying while Qantas’s contribution accounted for just 6 per cent of the agency’s overall marketing budget, he would “like to resume a great relationship with Qantas".

While Mr McEvoy would not be drawn on the detail, he said Qantas and TA combined had been set to contribute $44 million in cash and in kind – such as airline fares – towards marketing Australia abroad over the next three years.

Victoria’s government welcomed the developments as an oportunity for state funding, but other states were cautious.

Delivering the keynote speech at the ATEC’s conference on Thursday, Mr Kennett also warned Qantas against rushing in to spend the money with state government tourism bodies.

“I don’t think they should rush into handing it over," he later told the Financial Review. “I think they have got to give a lot of thought as to how they get maximum benefit from it."

fear that industry could fracture

Victorian Minister for Tourism Louise Asher played down Mr Kennett’s criticisms, welcoming recent developments as a new opportunity.

“Qantas has publicly stated that it will ensure its funding to Australian tourism will not be in jeopardy, and instead, will be largely distributed through the state tourism bodies," Ms Asher said. “We are currently in discussions with Qantas regarding the issue."

The key state tourism bodies – including Tourism Queensland, Tourism Western Australia, Tourism Victoria and Destination NSW – were not so forthcoming, refusing to comment.

Chief executive of the Queensland Tourism Industry Council, Daniel Gschwind, said the “new set-up" that is emerging “is going to be more complicated – but that is the way that Qantas want to play it".

Mr Gschwind said that there was a risk the approach to Australian tourism industry could now fracture.